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Kucklick contained a covenant by Mr. Kucklick not to compete with
HEI during the term of his employment and for 2 years thereafter
at any location within a 300-mile radius of South Bend, Indiana.
This 2-year covenant not to compete remained in effect under the
stockholders agreement.
In the 1990 time frame, approximately 50 percent of HII’s
overall sales and 80-90 percent of its overall earnings were
attributed to HEI. In 1990, Mr. Kucklick became president of HEI
and was responsible for the management and operation of that
subsidiary. At that time, Mr. Hess’s responsibilities shifted to
HII’s other subsidiaries. Customer relationships continued to be
one of Mr. Kucklick’s major strengths, and he remained very
involved in sales for HEI. He was recognized as one of the
foremost experts in the field of wheel-making manufacturing, and
under his leadership, HEI had received a number of prestigious
awards.
In the second half of 1994, Mr. Kucklick told Mr. Hess that
he wanted to sell his shares of HII stock and plan for his
retirement. In November 1994, Mr. Hess and Mr. Kucklick
3(...continued)
limited circumstances identified in the agreement. One of the
principal circumstances identified in the agreement was the death
of one of the shareholders. In that circumstance, the
shareholder’s heirs or estate would receive a put to the
corporation for the formula price stated in the agreement.
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Last modified: May 25, 2011